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Business 100 Test 1 Review
Business 100 Test 1 Review
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1
A firm that has made sizable investments and has a physical presence in several foreign countries as a manufacturer
multinational corporation
import trading company
franchiser
host company
2
__________ is buying products from another country.
Importing
Retailing
Exporting
Outsourcing
3
Which statement best describes ethical behavior in the United States?
only common standards of ethical behavior is religious teaching
The cultures in the US make it difficult to identify any common standard
Americans use the Golden Rule as the only statement of value
Respect human life, self-control, honesty & integrity are common standards
4
Contemporary governments promote business development by
increasing business regulations.
establishing a currency that is tradable in world markets.
encouraging government ownership of businesses.
permitting businesspeople to conduct business without the use of contracts.
5
When prices are free to adjust over time, in the long run, the market price of a good tends to
have no specific relationship to the equilibrium price.
rise above the equilibrium price in the long run.
equal the equilibrium price.
fall below the equilibrium price in the long run.
6
What is an advantage of a partnership?
shared management and pooled skills
little time commitment
unlimited liability
ease of starting and ending the business
7
An advantage of forming a joint venture is
a perpetual arrangement.
no shared costs or risk.
shared marketing and management expertise.
guaranteed profits for all participants.
8
Employers provide tools and technology for their employees in order to
increase the cost of production and profitability.
encourage the private ownership of businesses.
reduce corruption in business and eliminate scandals.
improve their efficiency and productivity.
9
Wave Market Entry Strategy
The first choice of most businesses
usually are geographically farther away
First stage involves markets similar to the forgein ones
Simultaneous Expansion to a Number of Foreign Markets BUT IN GROUPS
10
Organizational ethics begins with
the individual values of employees.
an understanding of the law.
traditional religious institutions.
strong managers.
11
The __________ is the total value of a nation's exports compared to its imports measured over a specific period of time.
balance of trade surplus
balance of trade
balance of trade deficit
balance of payments
12
As a factor of production, the term
capital
includes
services provided by the government.
natural resources such as land and water.
tools, machinery, and buildings.
stocks and bonds issued by corporations.
13
When businesses sell to other businesses online, these transactions are known as
e-wholesale transactions.
B2C transactions.
B2B transactions.
hidden transactions.
14
A key to economic growth and development is to
emphasize a fair and equitable distribution of income.
allow governments to guide the allocation of resources.
locate more deposits of gold and other precious metals.
provide people with better education.
15
The __________ is usually the easiest form of business to start and end.
sole proprietorship
limited partnership
cooperative
corporation
16
Governments charged a ______, a tax on imports, making imported goods more expensive.
binder
rite
tariff
law
17
Green marketing
Makes only products that are the color green
Are not prefered by customers
products designed to minimize negative effects on the environment
Are St. Patrick's Day products
18
What are the 3 Modes of Social Control
Ethics, Laws, & Informal/formal groups
Codes, People, & Ethics
Personal opinions, Ethics & Laws
Informal groups, laws & ethics
19
Which term describes the set of values, beliefs, rules, language, and institutions held by a specific group of people?
culture
customs
institutional society
ethnocentricity
20
What is an example of an outside group urging ethical behavior in businesses?
suppliers
sales representatives
union officials
management teams
21
Unlimited liability means
you are responsible for all the business debts
you are liable for whatever advertising promises your firm makes.
you are only liable for the money you invest in the business.
your franchisor is responsible for the debts of the franchise
22
One of the major disadvantages of a sole proprietorship is the
unlimited liability the owner has for the debts of the firm.
threat of double taxation on income.
high cost of starting or ending the company.
possibility of disagreements between owners.
23
A __________ is a form of business that is owned, and usually managed, by one person.
sole proprietorship
cooperative
subchapter S corporation
limited partnership
24
The balance of trade is defined as
trying to reduce the amount of debt between countries
balance of trade, services, unilateral transfers and capital accounts
balance of payments
net balance of export and import of goods in an given time
25
refers to output generated with a given amount of input, e.g., the number of pizzas produced per worker per hour.
Technology
Efficiency
Productivity
Competence
26
Which is not one of the 4 types of dumping
forward
persistent
sporadic
predatory
27
The limited liability provided to limited partners means that they are not responsible for the debts of business beyond
the percentage of profits they are entitled to earn.
their total personal assets.
the amount they have invested in the company.
the firm's total assets.
28
What is the most accurate statement about the impact of business on society?
Businesses cannot improve the standard of living for society
Businesses improve the quality of life, but not the standard of living
Businesses earn a profit for their owners at the expense of the rest world
Businesses can positively impact standard of living and the quality of life
29
We need to ask 3 questions when looking at business morals. Which is not one?
who is being helped or hurt?
Why is the change needed?
How long will the consequences last?
What actions produce the greatest amount of good?
30
Which term describes someone who reports illegal or unethical behavior?
watch tower sentinel
undercover agent
whistleblower
horn blower
31
What is De-anchoring of Inflation?
Inflation that has to do with manufacturing
Increase in pricing is tied to increase in wages
Increase in pricing is not tied to increase in wages
Inflation for sailors
32
A(n) __________ refers to a complete ban on importing or exporting of products from a specific country.
embargo
quota
absolute tariff
protective tariff
33
The freedom for people to buy, sell, and use buildings, machinery, and inventions are basic capitalist rights under
freedom of expression.
the right to own private property.
freedom of choice.
freedom of competition.
34
The most important difference between for-profit businesses and nonprofit organizations is that
nonprofit organizations do not seek a profit for their owners
for-profit businesses do not benefit society.
nonprofit organizations seek profit for their owners and organizers.
nonprofit organizations do not answer to stakeholders.
35
Efforts by the Federal Reserve Bank to control the money supply and interest rates are known as __________ policy.
income
monetary
fiscal
securities
36
A benefit of a free market can be that
it eliminates wealth inequalities in society.
it tends to reduce government regulation.
businesses all make the same amount of profit.
businesses provide customers with quality products at fair prices.
37
Businesses that produce and sell tangible products such as steel and machines are part of the
social services industry.
manufacturing industry.
knowledge-based industry.
service industry.
38
The four basic types of unemployment are frictional, structural, seasonal, and
cyclical.
traditional.
procedural.
industrial.
39
The goal of dumping is to
help the environment
create a market for cheap goods
help low income countries find work
sell illegal goods
40
A typical demand curve shows that
as supply increases, the amount purchased decreases.
people tend to buy more of a good when its price decreases.
people tend to buy more of a good than they really want.
as people earn higher wages, they buy more of a specific good.
41
A __________ is a severe recession that is usually accompanied by deflation
stagflation
depression
dissolution
retraction
42
What is the best strategy to improve U.S. business ethics?
Ethics must be taught in every business school around the globe.
Company leaders should adopt and support a corporate code of ethics.
Congress must pass an ethics bill.
A company's suppliers must be investigated for ethical violations.
43
Often in business the greater the risk, the
greater the number of stakeholders.
lower the expected revenues.
greater the potential reward.
lower the value provided to society.
44
Given the ethical lapses in our businesses, what can be done to restore trust in the free-market system and leaders
Making the government accountable for business behavior will restore trust.
Government must take over all businesses displaying ethical lapses.
New laws making accounting records transparent may help restore trust.
Business leaders that have broken the law should be given another chance.
45
An ________ is a complete ban on the import or export of a certain product or stopping all trade with a country
restricitve quota
foreign policy
restricitve tariff
embargo
46
A very critical last step in the process of establishing an ethics code is
identification of the organizational ethics officer.
middle management support.
enforcement.
training.
47
Technology affects people in
Technology affects people in
a few information technology industries.
primarily high-income countries.
most industries.
48
All else being equal, socially responsible firms
are viewed more favorably by consumers.
often experience customer loyalty problems.
enjoy significantly higher profits.
fail to earn sufficient profits for their owners.
49
Waterfall Market Entry Strategy
Clearly defined entry stages and the sequential use of experience
Easily used
Sequential Business Expansion to Foreign Markets
The knowledge obtained during one stage is used to enact the next one
50
Creating intense competition between employees within the corporation
can bring out the best in employees.
can encourage employees to deceive customers.
must be ignored when corporate ethics are developed.
will improve customer service.
51
Free trade between nations generally results in
higher prices for imported goods.
mutually beneficial exchange relationships.
an increase of jobs in developed nations.
industrialized nations gaining at the expense of developing nations.
52
Efficiency in distribution systems around the world has led to
increased world trade.
reduced standards of living around the world.
decreased international competition.
decreased world trade.
53
Inflation is
the increase in consumer debt
the overheating of the economy
the decrease in consumer debt
the general price level rise of goods and services in an economy
54
Dumping
talking trash
selling illegal goods to underdeveloped countries
selling products in a country at a lower price than charges in that country
sending trash to other countries
55
Which is not true, ethical values are:
situation-specific
time oriented
cannot go back in time
Only cause related
56
What policies would tend to foster entrepreneurship?
Promote more regulations to protect the environment.
Minimize taxes and regulations.
Encourage government ownership of businesses.
Develop policies to reduce corruption between individuals.
57
What is an unresolved ethical issue that surrounds global trade?
transportation issues
time to market issues
product quality
labor standards
58
The amount of goods and services people can buy with the money they have is called their
consumer price index.
profit margin.
nominal income.
standard of living.
59
Cause related maketing
marketing is for businesses in debt
the corporation receives profit & the nonprofit receives benefit
marketing is about laws
marketing is for sole proprieitors
60
Sprinkler Market Entry Strategy
Designed to outrun the competition
not risky because it takes significant investment
The first choice of most businesses
Simultaneous Business Expansion to a Number of Domestic Markets
61
To many businesspeople, one of the major attractions of a sole proprietorship is
guaranteed financial success.
the protection of limited liability.
the ability to obtain additional financial resources.
the chance to be their own boss.
62
Which situation would most likely involve ethical concerns?
developing the marketing plan for the next year
improving working conditions
forecasting sales for the next year
overstating an expense report
63
What are the rules called people develop as a result of cultural values and norms
changes
responsibilities
morals
deviontions
64
The gross domestic product
provides the overall value of the goods and services that economy produces
does not look at consumer spending
does not include unemployment measures
is not an economic indicator
65
An _________is a limit on the number of products in certain categories that a nation can import.
import rite
import binder
import law
import quota
66
When we compare the factors of production in wealthy versus poor nations, we find
rich and poor countries have knowledge; but rich have more land
poor countries have more land but little labor
Rich countries have more land poor countries have more capital
wealthy nations have opportunities, while poor nations lack knowledge
67
What is an advantage of offshore outsourcing?
Companies can create efficiencies by hiring low-wage employees.
Wages increase in the home country.
Product quality improves permitting firms to charge more for products.
Communication between the company and its customers improves.
68
Although the details are still being negotiated, the expected successor to NAFTA is
Mercosur.
the Central American Free Trade Agreement.
the United States–Mexico–Canada Agreement.
the ASEAN Economic Community.
69
The social and economic goals of __________ include private ownership of land and business.
command economies
socialism
capitalism
communism
70
A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to
fluctuate randomly around its equilibrium value.
remain constant.
increase.
decrease.
71
We describe charitable donations by corporations to nonprofit organizations as
structural commitment.
corporate philanthropy.
corporate responsibility.
corporate strategy.
72
Considering the potential impact on others prior to making a decision is consistent with _____ behavior.
self-motivated
ethical
legal
anti-social
73
One advantage of free trade is
jobs are shifted to low-wage global markets.
innovation for new products occurs & keeps firms competitively challenged.
service jobs are moved overseas.
advanced production operations are built in low-wage countries.
74
Ethical Behavior depends on a
Formal groups
Laws
A Businessman's daily conduct
Codes
75
Taxes and government regulations are part of the __________ environment of business.
economic and legal
social
competitive
technological
76
A common characteristic of most entrepreneurs is that they
accept the risks involved in starting and managing a business.
possess a great deal of personal wealth.
have experience in running large, complex organizations.
have a high level of scientific and technical expertise.
77
To eliminate the risk of partners making costly mistakes that could jeopardize your personal assets is to set up a
master limited partnership.
sole proprietorship
limited amount of time each can actively spend in the business.
limited liability partnership.
78
__________ comprise about 20% of all businesses but account for about 81% of U.S. business receipts.
Limited liability companies
Sole proprietorships
Corporations
Partnerships
79
An owner of a corporation is known as a
limited partner.
director
stockholder.
general partner
80
What is trade protectionism?
balancing trade
the use of government regulations to limit imports of goods and services
protecting the environment
self monitoring
81
Consumer spending
accounts for two-thirds of U.S. gross domestic product
is limited in the amount one can actively spend in the business.
predicts forgien policy
is not a good gauge of consumer health
82
Following an ethics-based approach to decision making will normally lead to higher
prices.
profits.
employee turnover.
trust and cooperation.
83
The _____ is the most common form of business ownership
partnership
sole proprietorship
joint venture
corporation
84
In a limited liability partnership, each partner's risk of losing personal assets is
determined by the maximum loss provision established by the co-partnership
limited to losses that result from that partner’s own acts and omissions
unlimited.
nonexistent.
85
__________ describes an attitude held by some American businesspeople that American culture is superior to all others.
Social myopia
Cultural institutionalism
Ethnocentricity
Primary culture
86
The legislation that prohibits U.S. businesses from making questionable payments to foreign officials to secure business
Foreign Antitrust Act.
Global Good Conduct law.
Foreign Corrupt Practices Act.
Multinational Collusion law.
87
In recent years, almost all new job creation in the United States has occurred in the __________ sector.
service
manufacturing
agricultural
telecommunications
88
The first and most basic step when facing an ethical dilemma is to ask
"Is it balanced?"
"How will it make me feel about myself?"
"Is it legal?"
"Is it profitable?"
89
Which topic would be emphasized in a microeconomics class?
how market conditions determine the price of a specific product
the nation's unemployment rate
how the government can provide adequate health care
how a nation's GDP is computed
